All Forum Posts by: Dustin Sanders

@Avery Carl

Hey Avery, it’s great to hear from you again! Sounds like you and Luke are crushing it since we last spoke.

Do you have a goal of acquiring more than 10 STRs, if so, how do you plan to use those profits for future investments?

Currently, I have 5 properties which includes 2 long-term rentals & 3 short-term rentals. I am going on 2 years of house hacking (plan to house hack for a 3rd year), and I am looking to hear your perspective of how many short term rentals it has taken you to achieve Fat FIRE. 

All feedback is helpful & appreciated!

Dustin

@Josephine Ramesh thanks Josephine! I have created an LLC but I haven't considered that as an option yet so I'll start looking into that!

Dustin

@Kenneth Garrett thank you for your response, and it's very helpful to have concrete data points to give me some context! 
My question for you is how do I prove to the commercial lender that the DSCR for the investment property will be at least 1.25 before getting approved for the loan? Is it just based on forecasting or do I have to follow a specific DSCR calculation?

@Steve Morris Thanks for your reply Steve! That's a good question, and I probably should have mentioned that in my post. I have 2 properties that are producing positive cash flow (house hacking my primary & tenant in the other), but they have only realized income since September & October, respectively. 

My understanding is that lenders do take 70% of the monthly rent - all expenses and if there's still some left over then it's considered income. Even with that, that adds only a marginal increase to my gross income for the lender who is considering my debt to income ratio.

Am I understanding this correctly, or if I'm not please let me know because I'm really worried that plans for scaling my portfolio will be a major issue for the next year.

@Joe Splitrock

I apologize for just now noticing your response. I just got my 3rd property under contract and this will by right at my 45% debt to income ratio

@Taylor L.

I’ve heard of using commercial lenders since they focus on a different metric that is more catered to producing results rather than what your debt to income ratio is.

Do you know much about this?

@Taylor L.

Thanks for your response @Taylor L. What is str arbitrage?

I've hit my 45% debt to income ratio with closing on my 3rd property. Besides partnering & increasing my W-2 income, how can I still scale my rental portfolio?

@Nicholas Covington

Florida and Alabama